A consortium led by UK private equity house Terra Firma has agreed to buy Parmaco, a Finnish company specialising in building and renting high-quality buildings for schools, day care providers and nursing homes.
The consortium is acquiring the business from Finnish private equity player MB Funds, a leading Finnish private equity fund.
Terra Firma said it would use its Special Opportunities Fund IV for the deal, in partnership with European private capital manager Metric Capital and Hong Kong-headquartered investment firm Sun Hung Kai & Co.
Parmaco has recently grown its operations into Sweden, and has grown its asset base six-fold over the past four year to reach a new build portfolio spanning more than 200,000 sq m.
Terra Firma said it has extensive experience in infrastructure and leasing businesses, with previous investments including AWAS, the aircraft leasing company which it sold to Dubai Aerospace Enterprise in April 2017.
The firm exited German motorway service station operator Tank & Rast to Allianz Capital Partners in 2015.
Terra Firma chairman and CIO Guy Hands said, “The Parmaco acquisition is exciting news.
“Under MB Funds, Parmaco has earned a reputation as a well-run, customer-focused business providing high-quality and flexible modular educational space solutions.
“We are looking forward to working closely with Ossi Alastalo and his team at Parmaco and with the teams at Metric Capital and Sun Hung Kai.
“We anticipate investing significant capital in the business to further develop the asset base and diversify into new geographies.”
MB Funds managing partner Juha Tukiainen added, “After years of consistent building development and growth, Parmaco has become the leading provider of modular educational buildings to Finnish and Swedish municipalities.
“We are pleased to have agreed this transaction with Terra Firma and its consortium partners, who will bring significant expertise and capital to support Parmaco to grow further in the future.”
The transaction is expected to complete by the end of the year.
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